Measuring the Impact of Cybersecurity Risks on the Financial Resilience of Banking Institutions in a Digital Transformation Environment: A Field Study on Jumhouria Bank - Misrata Branch

Abstract

This study aimed to investigate the impact of management's perception of cybersecurity risks on the financial resilience of Jumhouria Bank (Misrata Branch) within the context of an accelerating digital transformation environment. The research problem lies in the financial and operational challenges imposed by cyberspace on Libyan banking institutions, and the extent of their ability to maintain financial stability against digital threats.

To achieve the study's objectives, the researcher adopted a descriptive-analytical approach. A questionnaire was developed as the primary data collection tool and distributed to a purposive sample of (29) employees from the administrative, financial, and technical cadres at the bank. The data were statistically processed using the Statistical Package for the Social Sciences (SPSS).

The study reached several key findings, most notably a high level of perception among the bank's management regarding cybersecurity risks, with a mean score of (4.09), alongside a firm conviction that investing in digital security is directly linked to protecting financial assets. Furthermore, regression analysis results proved a statistically significant impact of cybersecurity risks on financial resilience, as the independent variable explained (51.8%) of the variance in the bank's financial resilience level. The results also revealed a strong negative correlation between the frequency of cyber threats and resilience indicators, with "customer trust" being the dimension most affected by these threats.

In light of these findings, the study recommended the necessity of enhancing the bank's financial readiness by allocating financial reserves (contingency funds) to face cyber crises. It also emphasized intensifying specialized training programs for employees to bridge the gap between theoretical perception and procedural hedging, in addition to adopting effective communication strategies to maintain corporate reputation and customer trust in the face of increasing digital threats.